Cobra health insurance is widely relied on in the USA today. When you lose your job, you don’t just have the stress of having to find another position, but the stress of losing out on your health insurance too. Fortunately, there are ways for you to continue having health insurance coverage until you have a hold on your situation. You may have the option of COBRA; this is health benefits that continue with the Consolidated Omnibus Budget Reconciliation Act (COBRA). It’s a federal law so may help protect you for a short period. So, what are the 10 things you should know about COBRA?
You May Qualify for 36 Months of Coverage
If you lose your job, through voluntary or involuntary reasons, you will be able to get eighteen months of coverage from COBRA. This is possible as long as you haven’t been dismissed for gross misconduct. However, your children or spouse can get up to thirty-six months of coverage if you’re eligible for Medicare or you pass away. Cobra health insurance may also be able to offer coverage if you separate from your partner.
COBRA Coverage Isn’t Available If Your Company Goes Out of Business
Let’s say you’ve been an employee with the same company for over ten-years. If they go out of business – for whatever reason – and they drop COBRA coverage, you won’t have any health insurance. There is no Cobra health insurance available in these circumstances.
No Cobra Health Insurance If Your Employer Drops Health Insurance
Cobra health insurance may not be available if your employer decides to stop all health insurance groups or benefits. That means COBRA isn’t an option for you. It’s an incredibly frustrating, unfortunately, it does happen. What’s more, if there are fewer than twenty employees, COBRA won’t be available either.
COBRA Benefits Are Lost If You Move Out of the Area
Cobra health insurance has specific coverage areas and that could become a problem if you plan to move anytime soon. For instance, you live in New York city and move to Chicago. You move outside the coverage area and may lose any benefits you were entitled to. It’s vital to know about these things before you move as you may need additional coverage in place.
Alternatives Are Available
While COBRA has become hugely popular over the last few years, more alternatives have come into play. Remember, a few years ago, there were fewer alternatives to Cobra health insurance, fortunately there are more options. This is particularly useful to consider if you don’t have a lot of money to spend on health insurance. More details!
Premiums Must Be Paid by You
Cobra health insurance isn’t the cheapest health insurance plan. In fact, you must pay 100% of the premiums and a small fee for administration. This is a major drawback of COBRA because it can be an expensive option to look into.
You May Qualify for COBRA If You Receive Disability from the SSA
If you qualify for disability benefits, it’s likely you can receive up to twenty-plus months of COBRA care. However, SSA are the ones to determine if you’re disabled and eligible for COBRA. Cobra health insurance can help a lot of people, but it isn’t without drawbacks, nonetheless.
COBRA Laws Can Vary from State
While there is a federal law at play with COBRA, there are mini laws in each state. That does sound a bit confusing, however, it’s important to understand these laws in your state. For instance, group plans can remain in place for companies with fewer than twenty employees. Cobra health insurance is a little more complex at times, so it’s best to know the latest rules in your area.
Your Rights Remain the Same
A lot of people believe since they have Cobra health insurance, their rights change. However, that is not entirely true. You actually have the same insurance rights as you would have with your former employee health insurance. That does cause a lot of confusion, so it’s good to know these rights remain the same.
The Coverage Period Begins on the Last Day of Your Employment, Even If You Register Late
You have a period of sixty-days to decide if you wish to use COBRA. Regardless of if you chose to enrol in the program on day one or day fifty-nine, your coverage starts immediately. That is useful and something most people don’t realize. However, some wait to enrol into Cobra health insurance as they think it’ll prolong their coverage; it does not.
Know What COBRA Has to Offer
COBRA confused a lot of people. There are a lot of complicated matters surrounding this health insurance coverage, but you can strip it back and find out the most important points. However, it’s important to learn all you can about COBRA so that you can be sure it’s suitable for you. Cobra health insurance does have many positives, so think carefully if it’s right for you. Click here for more information: https://www.mrteegolf.com/how-much-do-cobra-and-cobra-alternatives-cost/